UPDATE: Apparently, AFP put enough political pressure on Democrats to perform a real audit of the Exchange that one is actually happening right now.  We just haven’t seen the results. They will be published in about six months. Stay tuned, PeakNation™. We’re on the edge of our seats….

In case you missed the U.S. Inspector General’s report that came out conveniently between Christmas and New Years, Colorado’s health exchange misused $9.7 million in federal grants. And, now, the federal government wants its money back. Here are just a few of C4HCo’s sins, according to the Inspector General’s report and a distillation by Daily Caller:

  • Spent nearly $9.7 million in grant funds in “unallowable” ways
  • Paid $478,858 to consultants who didn’t explain work accomplished on the invoice, and $331,375 in consultant invoices that didn’t show how the amounts were calculated
  • Failed to “efficiently and effectively administer establishment grant funds totaling $463,054 consisting of improperly awarded executive and employee bonuses, overpayments to subgrantees, unallowable promotional giveaway items, excessive and unreasonable tips, vendor rebates that were received but not credited to the establishment grants, and unallowable social activities”
  • Permitted self-approval of purchases on behalf of the previous executive staff
  • Permitted incomplete and inadequate disclosure of possible conflicts of interest
  • Allowed the use of establishment grant funds to purchase equipment for a previous Chief Executive Officer (CEO) who kept it for personal use when the CEO left the organization

It sounds like a consultants’ orgy on the taxpayers’ dime. Oh, and if the previous CEO, Patty Fontneau, could return the property paid for by taxpayers, that would be great.

This is not the first time that the Colorado Health Exchange has come under fire for some kind of scandal. From fudging enrollment numbers to lack of contracting oversight to personal information security breaches, Connect for Health Colorado has served up one mismanaged boondoggle after another. And, yet, Republicans have been consistently blocked by Democrats (some of whom hire the same consultants cited above) from doing a thorough audit of the entity. Now, the federal government wants $9.7 million back from the financially-strapped organization.

How about an audit now?